Stock Futures Pivot Lower as Volatility Resumes

Investors are brushing off this morning's round of upbeat earnings reports

Digital Content Manager
Oct 19, 2022 at 9:21 AM
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October's roller coaster continues, with stock futures eyeing downhill price action this morning. Markets are giving up some of this week's gains, even after Netflix (NFLX) delivered a strong earnings report, driving tech members higher. Futures on the Dow Jones Industrial Average (DJI) are pointed over 100 points lower, while Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) futures are also firmly below fair value.

U.S. Treasury yields are back on the rise, with the 2-year Treasury rising above 4.5%. Meanwhile, housing starts for September dropped a worse-than-expected 8.1% to an annualized rate of 1.44 million. Building permits, on the other hand, rose 1.4%, just shy of expectations. 

Continue reading for more on today's market, including:

futures oct 19

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.14 million call contracts and 760,818 put contracts traded on Tuesday. The single-session equity put/call ratio rose to 0.66, while the 21-day moving average stayed at 0.68.
  2. Netflix Inc (NASDAQ:NFLX) is surging ahead of the bell, last seen up 10.9% as it tries to chip away at its 62.2% year-over-year deficit. The streaming giant emerged from the earnings confessional with third-quarter earnings and revenue that topped expectations, and added 2.4 million subscribers.
  3. Procter & Gamble Co (NYSE:PG) is up 1.7% in premarket trading after sharing a top- and bottom-line beat for its fiscal first quarter. The consumer goods name also posted a 7% jump in organic sales, but lowered its full-year revenue forecast due to strength in the U.S. dollar. The equity is down 21.5% in 2022. 
  4. Adobe Inc (NASDAQ:ADBE), meanwhile, reiterated its current-quarter forecast, sending the security up 1.4% ahead of the bell. The stock has shed over 32% in the last six months, however, thanks in part to the a drop it suffered after the acquisiton of Figma last month. 
  5. Today's calendar will also bring the Federal Reserve's Beige Book.


China Data Delays Continue, Europe Digests CPI Reading

Stocks in Asia were mixed on Wednesday, as China continued to delay pertinent economic data, a move that sent the Shanghai Composite 1.2% lower. Meanwhile, the Hong Kong Hang Seng dipped 2.4%, after GROW Investment Group’s Chief Investment Officer William Ma said on CNBC’s Street Signs Asia that investors have to “wait and see” if Hong Kong leader John Lee’s policies will attract people back to the city state. Elsewhere, South Korea’s Kospi fell 0.6%, while Japan’s Nikkei added 0.4%, after the Japanese yen touched a 32-year high.

Equities in Europe are mostly lower at last glance, after the U.K. reported the consumer price index (CPI) rose 10.1%, in-line with the 40-year high posted in July. Rate hike and recession fears continue to weigh on the region’s major bourses, with London’s FTSE 100 and Germany’s DAX 0.3% and 0.1% lower, respectively. France’s CAC 40 was last seen 0.02% higher. In other news, Russian President Vladimir Putin announced martial law in the four regions of Ukraine that his country illegally annexed in September.


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